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Importance of Co-Operative Advertising in Retail Advertising

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Importance of Co-Operative Advertising in Retail Advertising!

Co-operative advertising is an important facet of retail advertising. Advertising support given by manufacturers to retailers is also termed’ ‘vertical advertising’, and can take many forms, including the following.

(a) The use of logotypes:

A logotype (or ‘logo’) is a specially designed distinctive symbol used to identify a company or a brand.

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It may be a sign, shape or trade character like those for Michelin, Mercedes-Benz, Shell or a name written in a certain way as used by IBM, Nike, Intel, Coca-Cola and Ford. Stockists may use their suppliers’ logos on letter-headings, in catalogues and in press and other visible advertising. Owners of logos supply retailers with the necessary artwork.

(b) Cost Sharing:

If the retailer is promoting any brand then its supplier may share the cost of buying advertisement space in the press or airtime.

(c) Ready Artwork:

Manufacturers may supply retailers with camera-ready artwork for press advertisements, to which the retailer has merely to add their name, address and telephone number. Camera-ready copy means that it is ready for photographing when plates are being made for offset-litho and flexographic printing.

(d) Suppliers share costs:

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Large retail advertisers, such as big supermarket chains and variety chain stores may take advertisement space in national, retail or local newspapers, the whole cost being shared by different suppliers whose goods are sold in the advertiser’s branches.

(e) Stockists’ lists:

These are another form of co-operative advertising, usually at no cost to the stockists who are listed in press advertisements or in cinema or TV commercials placed by the manufacturer. Thus, customers are directed to a source of supply.

It is to be noted that the expression co-operative advertising is applied here to retail advertising. There are also two other forms: joint promotions such as bread and butter; or trade or industry schemes based on levies on supporting firms, e.g. glass manufacturers known as horizontal advertising.